19th Century Painting by Hugh Goldwin Riviere
Hello Ladies,
I had hoped to have another video by now but I am not able to make a decision about what subjects I should cover. Today the subject on my mind is income: passive and active.
I once tried to explain this to someone who was desperately wanting to know how my husband could support me at home. In order to give me a final shock, she said, "SOME of us have to work, because we don't believe a man is a financial plan." I looked this up and found it was part of a (religious in fact) seminar for women to help them learn to save and invest). I did respond that if the saying were true, she should refuse the inheritance left to her by her grandfather and father, and also anything she got from her husband during her divorce, and she told me she got quite a bit from his retirement and other things. The point I tried to make is that we ladies don't think any one source is a financial plan. There are many sources that people just do not see.
I read somewhere years ago that you have to maintain two kinds of finances: one is passive income, and one is active income. The active income is obviously the money you get for labor each week or pay day, or anything you sell. Most of our husbands bring home an income, which is used to run the home and provide for the family, and some ladies have other sources of income, whether it be a little shop online or at home, or something else.
The passive income is a little harder to describe. It is that house you are living in, if you own it, or the little you have stashed away that is gaining any kind of interest, or the things in your home with value that you could liquidate if you needed cash. Passive income is something quieter and less visible but is a great backup plan.
One definition of passive income is "money you are not exchanging your labor for," or income created in other ways.
(I am sorry I did not find the artist for this painting)
Having a wholesome family life with members who learn not to be a burden and do not always need rescuing from bad decisions (bad decisions, inadvisable friendships and other things that cost you money out of pocket to correct.) IF you can explain in an understandable way how much more money you can gift to your children if they live close to home and develop a healthy respect for money earned, as well as so-called "passive" income, you may get more cooperation. One example may be to point out something in the house and say that it has re-sale value if preserved. Or, explain why you do your own repairs, and show how it prevents money going out.
I am not claiming to have done all this, but I'm still learning and trying to see how to manage on a limited amount of money. and am sharing some ideas with you.
We have all known of those who were extremely poor in cash, with little in material comforts, who eventually prospered, because their cash was not going "out" all the time to correct all the problems caused by poor judgment, or other things. In a way I think this could also be called your "passive income" because it is a type of prosperity that works quietly over the years, keeping you from having to spend anything to correct something.
Still another source of income I have observed is the use of your mind and your hands to work in the home. If you can do it yourself, you will not have any cash going out. Painting and repairing things these days is relatively easy. There are now instructions online on video and elsewhere for replacing elements and pieces in the water heater, the washer, dryer, the stove and fridge. If I had that information years earlier we would not have gone through so many appliances and had a lot larger savings.
Perhaps never stated in any financial advice, is the way we handle our emotions and how it can affect our active and passive income. Unhappy or troubled people spend more money to compensate themselves or relieve the pressures of life.
Someone told me they had watched a Hallmark series called "Aurora Teagarden Mysteries" and in it, the Mother of the young lady who had a mystery club, said, "We Teagarden ladies do not have 'melt-downs'. Instead, we figure out what the problem is, then roll up our sleeves and go to work to solve it."
Emotional meltdowns in the face of problems will cost us something, because as we spend hours in what I call a "state of stun" trying to focus on our responsibilities and purpose, and while troubling thoughts whirl around in our minds, we lose a lot of time and do not know which end is up, are unable to focus on meal preparation (or whatever is needed) and have to go to the deli to fetch dinner, which as you know, is expensive. Emotional upheaval can also affect our ability to drive, and we may find ourselves somewhere else! I'm not implying you cannot ever eat out, but I'm making a point about how your mind can be a source of income or loss of income if you are careful about your guarding your thoughts.
Now, as to what to do about the emotional attacks of other people when you are accused, criticised or demeaned for anything, of of the most successful tactics for ladies like me is to work it out of your head by organizing your button stash (if you are a sewist), cleaning the spice cabinet, sweeping the front porch, or washing your hair. The principle is, I suppose, is, when you feel you have been stabbed in the back or in the heart or had your mind messed with, use it as a signal to succeed at something, and rise far and away above anything you've ever done, even if it is just being happy.
If Mother was upset, she often went outside to a quite place, had a good cry (or scream) and then washed her hair. And, this was quite a process. You had to go outside and pour the water over your hair, shampoo it with a bar of soap, then pour more water over it for a rinse, then use vinegar for a final rinse. If you will notice in some of the period dramas, sisters would help each other by pouring water over their hair.
After that, your wrapped your hair in a towel and walked around for awhile feeling like an important sultan with a head dress, and then when the dripping water was sufficiently soaked, you'd remove the towel and wrap strands of hair in strips of cotton fabric, used as rollers
By this time, those troubling thoughts and anxieties were transferred to the job at hand. When the hair was dry, there was the activity of untying those rags and brushing the curls so they would blend together, and then fastening up the hair in a style. In those days we also had a type of setting lotion made of boiled sugar or salt, and water. It could also be made into a hair spray.
I do not think washing your hair in the shower has quite the same effect on the emotions as washing it outside using collected rainwater did. Note: we did not do this outside in the winter, but used the same procedure over a basin.
There have been many posts written by other ladies showing how getting your appearance in order, dressing, etc. can make you feel more fit for the problems ahead.
Any thing could be used, such as mixing up a batch of bread, or something in the kitchen, starting a sewing project, or paper crafting, or whatever absorbs you the most, and it can also be a source of active income. The point is, meltdowns don't produce anything. At first you may cry but after that, you have to occupy yourself some way that has good results. Even if you are reading a book, it is better for your emotions (if you can actually concentrate on reading after any kind of emotional upheaval).
There is one other thing that can end up costing you something: listening to those who say: "That is a lovely dress you made. You could make these and sell them!" I'm sure many ladies have exhausted themselves doing this, and then find they lose interest when it comes to making clothes for their own families. Time is very valuable and it doesn't last forever, so you have to guard it carefully. I remember one time I made about hundred little craft items to sell and when they did not all sell, I had to donate some and use some as gifts. In the meantime I was neglecting things in the house and most of all I could have been making things for my own children and I should have kept the money spent on the project, for them.
In all things, remember to petition the Lord and ask for His stability in your life.
do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.
Philippians 4:6-7
The point I wish to make (in case I clouded it with all the words ;-)) is that we have to make sure we don't let emotionally debilitating statements ruin us by getting us away from our short term and long term plans, dreams and goals. This in my opinion can be a source of passive income, in that it will work for you quietly and increase later in other ways. Emotions have to be under "good regulation" as the old saying goes.
I am interested in what you all think about this concept, so please leave comments.
